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S&P affirms Berkshire's ratings, upgrades outlook

Warren Buffett
Adam Jeffery | CNBC
Warren Buffett

Standard & Poor's Ratings Services has affirmed its ratings on Berkshire Hathaway while revising upward the outlook on all ratings to stable from negative, it announced Monday.

The agency affirmed Berkshire Hathaway's "AA/A-1+" counterparty credit and "AA+" insurance financial strength ratings. The outlook revision was based on improved capital adequacy, though S&P said it remains concerned with "the potential volatility" of Berkshire Hathaway's capital.

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Its large investments in common and preferred stocks, as well as its "aggressive acquisition strategy," pose risks, but earnings stability offsets those concerns, S&P said.

It could lower Berkshire Hathaway's ratings as a result of increasing investment risk exposure, sustained equity market declines or the funding of a large acquisition. S&P said it did not expect to raise ratings in the short-term based on the sovereign rating cap.

— By CNBC.com staff